TRUST COMPANIES

Nev. Rev. Stat. 669
in effect

Nev. Rev. Stat. § 669.010 Declaration of legislative intent.

The Legislature finds as facts and determines that: 1. There exists in this State a need, for the protection of the public interest, to regulate companies which are engaged in the trust company business. 2. Such trust companies should be licensed and regulated in such manner as to promote the public advantage and convenience. 3. It is the purpose of this chapter to bring under public supervision those persons who are engaged in or who desire to engage in the business of a trust company, not in connection with banking business, and to insure that there is established in this State an adequate, efficient and competitive trust company service.

Nev. Rev. Stat. § 669.020 Definitions.

As used in this chapter and chapter 669A of NRS, unless the context otherwise requires, the words and terms defined in NRS 669.029 to 669.070, inclusive, have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 669.029 “Business of a trust company” and “trust company business” defined.

“Business of a trust company” or “trust company business” means the holding out by a person, by advertising, solicitation or other means, that it is available to act as a fiduciary in this state and undertaking to act as a fiduciary in the regular course of its business.

Nev. Rev. Stat. § 669.040 “Court trust” defined.

“Court trust” means a fiduciary relationship created by an appointment, order or decree of any court.

Nev. Rev. Stat. § 669.042 “Family trust company” defined.

1. “Family trust company” means a corporation or limited-liability company that: (a) Acts or proposes to act as a fiduciary; (b) Is organized or qualified to do business in this State to serve family members; and (c) Does not: (1) Transact trust company business with; (2) Propose to act as a fiduciary for; or (3) Solicit trust company business from, Ê a person who is not a family member. 2. As used in this section: (a) “Designated relative” means the common ancestor of the family, who may be either a living or deceased person. With regard to: (1) A licensed family trust company or a family trust company applying to be licensed pursuant to this chapter, the designated relative is the person who is designated in the application for a license under this chapter or in the annual renewal of a license. (2) A family trust company other than a family trust company described in subsection 1, the designated relative is any person designated by the family trust company in a letter to the Commissioner sent by certified mail, return receipt requested. (b) “Family member” includes, without limitation, the designated relative and: (1) Any person within the tenth degree of lineal kinship to the designated relative; (2) Any person within the ninth degree of collateral kinship to the designated relative; (3) Any nonfamily member who is an individual beneficiary under a will or trust created by a family member specified in subparagraph (1) or (2), including the spouse and issue of that person; (4) The spouse and any former spouse of the designated relative or of any person qualifying as a family member under subparagraph (1) or (2); (5) Any person within the fifth degree of lineal kinship of a spouse or former spouse identified in subparagraph (3) or (4); (6) A family affiliate and the officers, managers and directors of that family affiliate and their immediate families; (7) An inter vivos or testamentary trust established by a family member either individually or jointly with a spouse or third party and any trustee, advisor or other person assisting with administration of that trust; (8) An inter vivos or testamentary trust established by a person who is not a family member if noncharitable beneficiaries of that trust include family members; (9) The estate of a family member; (10) The estate of a nonfamily member if the noncharitable beneficiaries of that estate include family members; and (11) A charitable foundation, charitable trust or charitable entity of which a family member is an organizer, incorporator, officer, member of the governing board, trustee, major donor or noncharitable beneficiary and the officers, directors, individual trustees and managers of that foundation, trust or entity and their immediate families. 3. For the purposes of this section: (a) A family member is not a member of the public. (b) A legally adopted person must be treated as a natural child of the adoptive parents. (c) A stepchild must be treated as a natural child of the family member who is or was the stepparent of that child. (d) Children of a spouse of a family member must be treated as natural children of that family member. (e) Degrees are calculated by adding the number of steps from the designated relative through each person to the family member either directly, in the case of lineal kinship, or through the common ancestor, in the case of collateral kinship. As used in this paragraph: (1) “Collateral kinship” means a relationship that is not lineal but stems from a common ancestor. (2) “Lineal kinship” means a family member who is in the direct line of ascent or descent from the designated relative.

Nev. Rev. Stat. § 669.045 “Fiduciary” defined.

1. “Fiduciary” means a trustee, executor, administrator, guardian of an estate, personal representative, conservator, assignee for the benefit of creditors, receiver, depositary or person that receives on deposit money or property from a public administrator or a person employed or contracted with pursuant to NRS 253.125 , as applicable, under any provision of this chapter or from another fiduciary. 2. As used in this section, “administrator”: (a) Includes servicers or administrators of individual retirement accounts within the meaning of section 408(a) of the Internal Revenue Code of 1986, 26 U.S.C. § 408(a), where the servicer or administrator holds itself out to the public for performance of such services and holds or maintains an ownership interest in the servicing rights of such accounts, or possesses or controls any of the assets of such accounts, including cash. (b) Does not include a trust company or savings bank that acts as a custodian for individual retirement accounts within the meaning of section 408(a) of the Internal Revenue Code of 1986, 26 U.S.C. § 408(a), or an affiliate of such a trust company or savings bank that provides services to the trust company or savings bank.

Nev. Rev. Stat. § 669.047 “Grandfathered trust company” defined.

“Grandfathered trust company” means a trust company that: 1. Held a license pursuant to this chapter on March 16, 2009; or 2. Filed an application for a license pursuant to this chapter with the Commissioner on or before March 16, 2009, and held such license on October 1, 2009.

Nev. Rev. Stat. § 669.049 “Noncustodial trust company” defined.

1. “Noncustodial trust company” means a grandfathered trust company that: (a) Does not manage, or advise regarding, in the aggregate, more than $100,000,000 worth of a client’s assets; (b) Does not have custody or control of clients’ assets that exceed 20 percent of the total assets that the trust company manages for all clients; and (c) To the extent that the trust company has custody or control of a client’s assets, invests such assets pursuant to: (1) Direction by the client; or (2) The prudent investor standards of NRS 164.700 to 164.775 , inclusive. 2. For the purposes of this section: (a) “Advise” means to provide investment advice. (b) “Control” means the ability to invest or transfer cash or any other asset in a fiduciary or client account to any person other than: (1) In the case of an account for which the trust company acts as fiduciary, the settlor or beneficiary; and (2) In the case of any other account of a client, the owner of the account. (c) “Manage” means the exercise of discretion regarding investments, whether or not that discretion is delegated to another person.

Nev. Rev. Stat. § 669.065 “Retail trust company” defined.

“Retail trust company” means an entity which is licensed under this chapter.

Nev. Rev. Stat. § 669.070 “Trust company” defined.

“Trust company” means a corporation or limited-liability company licensed as provided in this chapter and engaged in a trust company business.

Nev. Rev. Stat. § 669.080 Applicability of chapter.

1. This chapter does not apply to a person who: (a) Does business under the laws of this State, the United States or another state relating to banks, savings banks, savings and loan associations or thrift companies, but if the trust company business conducted in this State is not subject to supervision by a regulatory authority of another jurisdiction, the person must be licensed pursuant to this chapter before engaging in such business in this State; (b) Is appointed as a fiduciary pursuant to NRS 662.245 ; (c) Is acting in the performance of his or her duties as an attorney at law; (d) Acts as a trustee under a deed of trust; (e) Acts as a registered agent for a domestic or foreign corporation, limited-liability company, limited partnership or limited-liability partnership; (f) Acts as a trustee of a trust holding real property for the primary purpose of facilitating any transaction with respect to real estate if he or she is not regularly engaged in the business of acting as a trustee for such trusts; (g) Engages in the business of a collection agency pursuant to chapter 649 of NRS; (h) Engages in the business of an escrow agency, escrow agent or escrow officer pursuant to the provisions of chapter 645A or 692A of NRS; (i) Acts as a trustee of a trust created for charitable or nonprofit purposes if he or she is not regularly engaged in the business of acting as trustee for such trusts; (j) Receives money or other property as a real estate broker licensed under chapter 645 of NRS on behalf of a principal; (k) Engages in transactions as a broker-dealer or sales representative pursuant to chapter 90 of NRS; (l) Acts as a fiduciary under a court trust; (m) Does business as an insurer authorized to issue policies of life insurance and annuities or endowment contracts in this State and is subject to regulation and control of the Commissioner of Insurance; (n) Acts as a fiduciary as an individual; (o) Acts as a family trust company, unless the family trust company is licensed under this chapter. A family trust company which is not licensed under the provisions of this chapter shall be deemed not to be engaged in trust company business for the purposes of this chapter; or (p) Except as otherwise provided in chapter 669A of NRS, is a family trust company, as defined in NRS 669A.080 . 2. A bank, savings bank, savings and loan association or thrift company claiming an exemption from this chapter pursuant to paragraph (a) of subsection 1 must notify the Commissioner of Financial Institutions of its intention to engage in the business of a trust company in this State and present proof satisfactory to the Commissioner of Financial Institutions that its fiduciary activities in this State will be subject to regulation by another jurisdiction.

Nev. Rev. Stat. § 669.083 Retail trust company required to maintain principal office in Nevada.

1. A retail trust company licensed in this State shall maintain its principal office in this State. 2. The conditions for a retail trust company to fulfill the requirements of subsection 1 include, but are not limited to: (a) A verifiable physical office in this State that conducts such business operations in this State as are necessary to administer trusts in this State; (b) The presence of an employee that is a resident of Nevada in the principal office who has experience that is satisfactory to the Commissioner in accepting and administering trusts; (c) Maintenance of originals or true copies of all material business records and accounts of the retail trust company which may be accessed and are readily available for examination by the Division of Financial Institutions; (d) Maintenance of any cash as a portion of the required stockholders’ equity pursuant to NRS 669.100 in accounts with one or more banks or other financial institutions located in this State; (e) The provision of services to residents of this State consistent with the business plan provided by the trust company with its license application; and (f) Such other conditions that the Commissioner may reasonably require to protect the public interest.

Nev. Rev. Stat. § 669.085 Pre-opening examination by Commissioner; other requirements.

1. In rendering a decision on an application for a license as a retail trust company, the Commissioner shall consider: (a) The proposed market or markets to be served and, if they extend outside of this State, any exceptional risk, examination or supervision concerns associated with such markets; (b) Whether the proposed organizational and capital structure and the amount of initial capital appear adequate in relation to the proposed business and market or markets, including, without limitation, the average level of assets under management and administration projected for each of the first 3 years of operation; (c) Whether the proposed officers and directors or managers of the proposed retail trust company, as a group, have sufficient experience, ability, standing and competence and whether each individually has sufficient trustworthiness and integrity to justify a belief that the proposed retail trust company will be free from improper or unlawful influence and otherwise will operate in compliance with the law and applicable fiduciary duties and that success of the proposed retail trust company is reasonably probable; (d) Whether any investment services to trusts, estates, charities, employee benefit plans and other fiduciary accounts or to natural persons, partnerships, limited-liability companies and other entities, including, without limitation, providing investment advice with or without discretion or selling investments in or investment products of affiliated or nonaffiliated persons, will be conducted in compliance with all applicable fiduciary standards, including, without limitation, NRS 164.700 to 164.775 , inclusive, the duty of loyalty and disclosure of material information; (e) Whether the proposed retail trust company will be exempt from registration under the Investment Advisers Act of 1940, 15 U.S.C. § 80b-1 et seq., and any similar state laws in each state where it would otherwise be required to register and, if not, whether it will comply with such registration requirements before commencing business and thereafter will comply with all federal and state laws and regulations applicable to it, its employees and representatives as a registrant under such laws; (f) Whether the proposed retail trust company will obtain suitable annual audits by qualified outside auditors of its books and records and its fiduciary activities under applicable account rules and standards as well as suitable internal audits; and (g) Any other factors that the Commissioner may reasonably require. 2. The Commissioner may require a retail trust company to maintain capital in excess of the minimum required either initially or at any subsequent time based on the Commissioner’s assessment of the risks associated with the retail trust company’s business plan or any other circumstances revealed in the application, the Commissioner’s investigation of the application or any examination of or filing by the retail trust company thereafter, including any examination before the opening of the retail trust company for business. In making such a determination, the Commissioner may consider: (a) The nature and type of business proposed to be conducted by the retail trust company; (b) The nature and liquidity of assets proposed to be held in its own account; (c) The amount of fiduciary assets projected to be under management or under administration of the retail trust company; (d) The type of fiduciary assets proposed to be held and any proposed depository of such assets; (e) The complexity of fiduciary duties and degree of discretion proposed to be undertaken by the retail trust company; (f) The competence and experience of proposed management of the retail trust company; (g) The extent and adequacy of proposed internal controls; (h) The proposed presence or absence of annual audits by an independent certified public accountant, and the scope and frequency of such audits, whether they result in an opinion of the accountant and any qualifications to the opinion; (i) The reasonableness of business plans for retaining or acquiring additional equity capital; (j) The existence and adequacy of insurance proposed to be obtained by the retail trust company for the purpose of protecting its fiduciary assets; (k) The success of the retail trust company in achieving the financial projections submitted with its licensing application; (l) The fulfillment by the retail trust company of its representations and its descriptions of its business structures and methods and management set forth in its licensing application; and (m) Any other factor that the Commissioner may require.

Nev. Rev. Stat. § 669.087 License as retail trust company not transferable; change in control required to be reported; application; investigation fee.

1. A license issued pursuant to this chapter is not transferable or assignable, but upon approval of the Commissioner, a licensee may merge or consolidate with, or transfer its assets and control to, another entity that has been issued a license under this chapter. In making a determination regarding whether to grant such approval, the Commissioner may consider the factors set forth in paragraphs (a) to (m), inclusive, of subsection 2 of NRS 669.085 . 2. If there is a change in control of any retail trust company, the chief executive officer or managing member of the retail trust company shall report the fact and the person obtaining control to the Commissioner within 5 business days after obtaining knowledge of the change. 3. A retail trust company shall, within 5 business days after there is a change in the chief executive officer, managing member or a majority of the directors or managing directors of the retail trust company, report the change to the Commissioner. The retail trust company shall include in its report a statement of the past and current business and professional affiliations of each new chief executive officer, managing member, director or managing director. A new chief executive officer, managing member, director or managing director shall furnish to the Commissioner a complete financial statement on a form prescribed by the Commissioner. 4. A person who intends to acquire control of a retail trust company shall submit an application to the Commissioner. The application must be submitted on a form prescribed by the Commissioner. The Commissioner shall conduct an investigation pursuant to NRS 669.160 to determine whether the person has a good reputation for honesty, trustworthiness and integrity and is competent to control the trust company in a manner which protects the interests of the general public. 5. The retail trust company with which the applicant described in subsection 4 is affiliated shall pay the nonrefundable cost of the investigation as the Commissioner requires. If the Commissioner denies the application, the Commissioner may forbid or limit the applicant’s participation in the business of the trust company. 6. As used in this section, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policy of a retail trust company, or a change in the ownership of at least 25 percent of the outstanding voting stock of, or participating members’ interest in, a retail trust company.

Nev. Rev. Stat. § 669.090 Unlawful to engage in business of trust company without license; exception.

Except as otherwise provided in NRS 669.201 to 669.209, inclusive, it is unlawful for any retail trust company to engage in the business of a trust company without complying with the provisions of this chapter and having a license issued by the Commissioner.

Nev. Rev. Stat. § 669.092 Unlawful for retail trust company to engage in business at office outside Nevada without prior approval.

1. It is unlawful for any retail trust company licensed in this State to engage in trust company business at any office outside this State without the prior approval of the Commissioner. 2. Before the Commissioner will approve a branch to be located in another state, the retail trust company must: (a) Obtain from that state a license as a trust company; or (b) Provide proof satisfactory to the Commissioner that the retail trust company has met all the requirements to do business as a trust company at an office in that state, including, without limitation, written documentation from the appropriate state agency that the retail trust company is authorized to do business in that state.

Nev. Rev. Stat. § 669.095 Unlawful to use or advertise word “trust” as part of name; exceptions.

1. Except as otherwise provided in subsection 2, no person or organization formed and doing business under the laws of this State or any other state may: (a) Use the word “trust” or any direct derivative of that word as a part of its name. (b) Advertise or use any sign with the word “trust” used as a part of its name. 2. The provisions of subsection 1 do not apply to a person or organization which: (a) Is supervised by the Commissioner of Financial Institutions pursuant to this chapter or chapters 657 to 668 , inclusive, 673 or 677 of NRS; (b) Is doing business under the laws of the United States or another state relating to banks, savings banks, savings and loan associations or thrift companies; (c) Is authorized to engage in the solicitation of trust company business in this State pursuant to NRS 669.205 ; (d) Is authorized to act as a fiduciary or solicit trust company business pursuant to NRS 669.207 or establish and maintain a retail trust company office and engage in the business of a trust company in this State pursuant to NRS 669.209 ; (e) Is acting under an appointment pursuant to NRS 662.245 ; (f) Is supervised by the Commissioner of Insurance; or (g) Is doing business solely as a community land trust. 3. As used in this section, “community land trust” has the meaning ascribed to it in NRS 82.106 .

Nev. Rev. Stat. § 669.100 Minimum stockholders’ equity required for organization and operation.

1. No retail trust company may be organized or operated with a stockholders’ equity of less than $1,000,000, or in such greater amount as may be required by the Commissioner. The full amount of the initial stockholders’ equity must be paid in cash, exclusive of all organization expenses, before the trust company is authorized to commence business. 2. A retail trust company shall maintain at least 25 percent of its required stockholders’ equity in cash and at least an additional 25 percent of its required stockholders’ equity in cash or cash equivalents comprising certificates of deposit, money market funds or other insured deposits. Cash equivalents held by a retail trust company pursuant to this subsection may, upon prior approval by the Commissioner, comprise investments in treasury bills, government obligations or commercial paper which, if acquired after October 1, 2011, must mature not later than 3 months after the date of acquisition by the retail trust company. Any certificate of deposit, money market fund, insured deposit, commercial paper, treasury bill or government obligation, other than an obligation of the United States or an obligation guaranteed by the United States, that is held as a cash equivalent by a retail trust company pursuant to this subsection must not exceed 10 percent of the total required stockholders’ equity at the time the cash equivalent is purchased. The remaining amount of the retail trust company’s required stockholders’ equity may be a different form of readily marketable securities, or with prior approval by the Commissioner, other liquid, secure asset, bond, surety or insurance, or some combination of the foregoing. Any bond or other evidence of indebtedness held by a retail trust company pursuant to this subsection must have an investment grade credit rating and must have received a rating within one of the top three rating categories of Moody’s Investors Service, Inc. or Standard and Poor’s Ratings Services. 3. Any grandfathered trust company other than a noncustodial trust company that does not have the minimum capital required by this section as of October 1, 2009, shall: (a) Except as otherwise determined by the Commissioner, increase its capital to a minimum of: (1) By October 1, 2010, $500,000; (2) By October 1, 2011, $750,000; and (3) By October 1, 2012, $1,000,000; and (b) Maintain 25 percent of such minimum capital in cash on and after October 1, 2010. 4. Any noncustodial trust company that does not have the minimum capital required by this section as of October 1, 2009, shall: (a) Except as otherwise determined by the Commissioner, increase its capital to a minimum of: (1) By October 1, 2010, $350,000; (2) By October 1, 2011, $400,000; and (3) By October 1, 2012, $500,000; and (b) Maintain 25 percent of such minimum capital in cash on and after October 1, 2010. 5. As used in this section, “in cash” means in depository accounts with one or more banks in this State.

Nev. Rev. Stat. § 669.110 Certain organizational structure required for domestic trust company; authority to do business in this State required for foreign trust company.

An applicant for a license to conduct the business of a trust company under this chapter must be organized as a corporation or limited-liability company under the laws of this State or authorized to do business in this State as a foreign corporation or foreign limited-liability company.

Nev. Rev. Stat. § 669.115 Retail trust company required to have quarterly meetings.

The Commissioner may direct that the board of directors or managers of a retail trust company meet at least quarterly in regular meetings to review the books, records, funds and securities held by the retail trust company in its individual and fiduciary capacities and maintain a written record of those meetings for review by the Division.

Nev. Rev. Stat. § 669.116 Requirements concerning management or control of certain trust companies.

1. Except as otherwise provided in subsection 3, the affairs and business of a retail trust company organized as a corporation under the laws of this State must be managed or controlled by a board of directors of not less than five in number who must be selected by the stockholders at the annual meeting of stockholders in such manner as may be provided by the bylaws of the corporation. 2. Except as otherwise provided in subsection 3, the affairs and business of a retail trust company organized as a limited-liability company under the laws of this State must be managed or controlled by no fewer than five managers selected from the members as provided in the operating agreement. 3. The Commissioner may authorize a retail trust company to be managed or controlled by no fewer than three directors or managers, as appropriate. 4. The board of directors or managers of a noncustodial trust company must be not less than three in number unless a smaller number is authorized by the Commissioner.

Nev. Rev. Stat. § 669.117 Directors and managers: Qualifications.

1. No person is eligible to serve as a director or manager of any retail trust company unless the person: (a) Displays the competence and integrity to transact the business of the retail trust company in a manner which safeguards the interests of the general public; and (b) Has a financial status consistent with his or her responsibilities to the public. 2. The Commissioner may require any or all new directors or managing directors of a retail trust company to provide such financial and biographical information and verification thereof as the Commissioner deems appropriate, including the completion of any forms required to be completed in connection with the licensing of a retail trust company.

Nev. Rev. Stat. § 669.120 Certain provisions required in articles of incorporation or organization of domestic trust company; limitations on use of certain names by foreign trust company.

1. If a corporation or limited-liability company that is engaged in trust company business is organized under the laws of this state, the articles of incorporation or articles of organization must contain: (a) The name adopted by the trust company, which must be such as to distinguish it from any other trust company formed or incorporated in this state, or engaged in the business of a trust company in this state; and (b) The purpose for which it is formed. 2. The provisions of subsection 1 do not apply to a corporation or limited-liability company engaged in trust company business that is organized under the laws of another state, but it must use a name that distinguishes it from any other trust company organized as or conducting the business of a trust company in this state.

Nev. Rev. Stat. § 669.130 Unlawful for retail trust company to commence business without authorization of Commissioner.

A retail trust company shall not transact business, except business that is incidental to its organization, until it is authorized by the Commissioner to commence the business of a trust company as provided in this chapter.

Nev. Rev. Stat. § 669.150 Application for license: Contents; fees; regulations; withdrawal of application.

1. An applicant must file an application for a license to transact trust company business with the Commissioner on forms prescribed by the Commissioner, which must contain or be accompanied by such information as the Commissioner requires. 2. A nonrefundable fee of not more than $2,000 must accompany the application. The applicant must also pay such reasonable additional expenses incurred in the process of investigation as the Commissioner deems necessary. In addition, a fee of not less than $200 or more than $500, prorated on the basis of the licensing year as provided by the Commissioner, must be paid at the time of making the application. 3. Except as otherwise provided in NRS 669.092 , a trust company may maintain offices in this and other states. For every branch location of a trust company organized under the laws of this State, and every branch location in this State of a trust company organized under the laws of another state and authorized to do business in this State, a request for approval and, if applicable, licensing must be filed with the Commissioner on such forms as the Commissioner prescribes. A nonrefundable fee of not more than $500 must accompany each request. In addition, a fee of not more than $200, prorated on the basis of the licensing year as provided by the Commissioner, must be paid at the time of making the request. 4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money received by the Commissioner pursuant to this section must be placed in the Investigative Account for Financial Institutions created by NRS 232.545 . 5. The Commissioner shall consider an application to be withdrawn if the Commissioner has not received all information and fees required to complete the application within 12 months after the date the application is first submitted to the Commissioner or within such later period as the Commissioner determines in accordance with any existing policies of joint regulatory partners. If an application is deemed to be withdrawn pursuant to this subsection or if an applicant otherwise withdraws an application, the Commissioner may not issue a license to the applicant unless the applicant submits a new application and pays any required fees.

Nev. Rev. Stat. § 669.160 Investigation of applicant; rights of applicant upon denial of license; entry of final order; judicial review.

1. Within 90 days after the application for a license is filed, the Commissioner shall investigate the facts of the application and the other requirements of this chapter to determine: (a) That the persons who will serve as directors or officers of the corporation, or the managers or members acting in a managerial capacity of the limited-liability company, as applicable: (1) Have a good reputation for honesty, trustworthiness and integrity and display competence to transact the business of a trust company in a manner which safeguards the interests of the general public. The applicant must submit satisfactory proof of these qualifications to the Commissioner. (2) Have not been convicted of, or entered a plea of nolo contendere to, a felony or any crime involving fraud, misrepresentation or moral turpitude. (3) Have not made a false statement of material fact on the application. (4) Have not been an officer or member of the board of directors for an entity which had a license issued pursuant to the provisions of this chapter that was suspended or revoked within the 10 years immediately preceding the date of the application, and in the reasonable judgment of the Commissioner, there is evidence that the officer or member of the board of directors materially contributed to the actions resulting in the license suspension or revocation. (5) Have not been an officer or member of the board of directors for a company which had a license as a trust company which was issued in any other state, district or territory of the United States or any foreign country suspended or revoked within the 10 years immediately preceding the date of the application, and in the reasonable judgment of the Commissioner, there is evidence that the officer or member of the board of directors materially contributed to the actions resulting in the license suspension or revocation. (6) Have not violated any of the provisions of this chapter or any regulation adopted pursuant to the provisions of this chapter. (b) That the financial status of the directors and officers of the corporation or the managers or members acting in a managerial capacity of the limited-liability company is consistent with their responsibilities and duties. (c) That the name of the proposed company complies with the provisions of NRS 657.200 . (d) That the initial stockholders’ equity is not less than the required minimum. (e) That the applicant has retained the employee required by paragraph (b) of subsection 2 of NRS 669.083 . 2. After an investigation by the Commissioner pursuant to subsection 1, if the Commissioner finds any defect or deficiency in an application for licensure which would constitute grounds for denial of the application, written notice of such grounds for denial must be served personally or sent by certified mail to the applicant. The Commissioner shall allow the applicant an opportunity to cure any defect or deficiency in the application and, not later than 30 days after receipt of the notice of denial, to resubmit the application for approval. 3. If a defect or deficiency in an application is not cured pursuant to subsection 2, written notice of the entry of an order refusing a license to a trust company must be served personally or sent by certified mail to the company affected. The company, upon application, is entitled to a hearing before the Commissioner, but if no such application is made within 30 days after the entry of an order refusing a license to any company, the Commissioner shall enter a final order. 4. The order of the Commissioner is final for the purposes of judicial review.

Nev. Rev. Stat. § 669.190 Payment of license fees; regulations; deposit in State Treasury.

1. The initial fee to be paid for a retail trust company license must not be more than $3,000. 2. In addition, every retail trust company must pay an initial license fee of not more than $500 for each branch office that is authorized by the Commissioner. 3. Thereafter, every retail trust company must pay annually on or before April 1 of each year a license fee of not more than $3,000. 4. The Commissioner shall adopt regulations establishing the amount of the fees required pursuant to this section. All money collected under the provisions of this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091 .

Nev. Rev. Stat. § 669.200 Cancellation of license if retail trust company fails to open for business or maintain regular business hours.

The Commissioner shall issue an order cancelling a retail trust company’s license: 1. If the proposed retail trust company fails to open for business within 6 months after the date the license was issued, or within an additional 6-month extension granted by the Commissioner upon written application and for good cause shown; or 2. If the retail trust company fails to maintain regular business hours or otherwise conduct the business of a trust company for more than 30 days.

Nev. Rev. Stat. § 669.201 Definitions.

As used in NRS 669.201 to 669.209, inclusive, unless the context otherwise requires, the words and terms defined in NRS 669.2015 to 669.204, inclusive, have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 669.202 “Foreign independent trust company” defined.

“Foreign independent trust company” means a trust company licensed under the laws of a state other than Nevada and not subject to regulation, supervision and examination by a federal banking regulator.

Nev. Rev. Stat. § 669.203 “Foreign trust company” defined.

“Foreign trust company” means a trust company licensed under the laws of a state other than Nevada and subject to regulation, supervision and examination by a state banking regulator and at least one federal banking regulator.

Nev. Rev. Stat. § 669.204 “Home state” defined.

“Home state” means the state in which a foreign independent trust company or foreign trust company is licensed or chartered and maintains its principal place of business.

Nev. Rev. Stat. § 669.205 Foreign independent trust company request to engage in the solicitation of trust company business in this State: Procedure for approval or denial; renewal; fees; conditions and prohibited acts if approved.

1. If a foreign independent trust company seeks to engage only in the solicitation of trust company business in this State, regardless of whether the foreign independent trust company has a physical location in this State, the foreign independent trust company must submit to the Commissioner a written request on a form prescribed by the Commissioner for authorization to solicit trust company business in this State. The written request must be accompanied by: (a) A nonrefundable fee of $1,000. (b) Evidence that the foreign independent trust company is qualified to do business as a foreign corporation or foreign limited-liability company pursuant to chapter 80 or 86 of NRS, as applicable. (c) The designation of a registered agent who resides or is located in this State to receive service of legal process relating to activities conducted by the foreign independent trust company in this State. (d) If the foreign independent trust company proposes to have a trust representative office in this State: (1) The address of the trust representative office; (2) The names of all persons who will be representing the foreign independent trust company at the trust representative office; and (3) Evidence of compliance with all applicable requirements for state and local business registrations and licenses. (e) Confirmation that the foreign independent trust company is authorized to conduct business as a trust company in its home state. (f) Confirmation by the applicable regulatory authority in the home state of the foreign independent trust company that the license or charter of the foreign independent trust company is in good standing. (g) Evidence that the foreign independent trust company has a policy of insurance covering liability for errors and omissions relating to any activity by the foreign independent trust company involving residents of this State. (h) Evidence of compliance with NRS 669.206 , if the Commissioner requires a foreign independent trust company to maintain a surety bond. (i) Confirmation that the laws of the home state of the foreign independent trust company authorize a trust company licensed pursuant to the laws of this State to conduct business in the home state of the foreign independent trust company on substantially the same basis. (j) Confirmation that the home state regulator subscribes to and is a signatory of the Nationwide Cooperative Agreement for Supervision and Examination of Multi-State Trust Institutions as adopted by the Conference of State Bank Supervisors. 2. The Commissioner may deny the approval of a foreign independent trust company to engage in the solicitation of trust company business or have a trust representative office in this State if the Commissioner, in acting on the written request submitted pursuant to subsection 1 after consultation with the home state regulator, finds: (a) That the foreign independent trust company lacks sufficient financial resources to undertake the proposed solicitation or expansion without adversely affecting its safety or soundness; or (b) That such approval would be contrary to the public interest. 3. If the Commissioner approves a written request for authorization to solicit trust company business submitted pursuant to subsection 1, the foreign independent trust company must renew the request annually on a date and form prescribed by the Commissioner to continue such authorization. The written request for renewal must be accompanied by: (a) A nonrefundable renewal fee of $500; and (b) Confirmation that the information previously provided pursuant to paragraphs (b) to (j), inclusive, of subsection 1 remains accurate. If any such information has changed, the foreign independent trust company must provide updated information. 4. If the Commissioner approves a written request for authorization to solicit trust company business submitted pursuant to subsection 1, the foreign independent trust company: (a) Except as otherwise provided in paragraph (b), may solicit trust company business in this State and contact existing or prospective customers. (b) Shall not: (1) Accept a fiduciary appointment; (2) Execute a document that creates a fiduciary relationship; (3) Make decisions regarding the investment or distribution of fiduciary assets; or (4) Otherwise engage in any activity for which a license is required pursuant to this chapter. 5. The Commissioner may: (a) Rely on the applicable regulatory authority of the home state of a foreign independent trust company to examine and investigate activity conducted by the foreign independent trust company; (b) Investigate any trust representative office established and maintained in this State by a foreign independent trust company as the Commissioner may deem necessary to determine if the trust representative office is being operated in compliance with the applicable laws of this State and in accordance with safe and sound business practices; and (c) Require periodic reports regarding the operations of any foreign independent trust company that has been approved under this section. 6. All money received by the Commissioner: (a) From the payment of fees pursuant to paragraph (a) of subsection 1 must be placed in the Investigative Account for Financial Institutions created by NRS 232.545 ; and (b) From the payment of renewal fees pursuant to paragraph (a) of subsection 3 must be deposited in the State Treasury pursuant to the provisions of NRS 658.091 . 7. As used in this section, “trust representative office” means a place of business in this State from which a foreign independent trust company may solicit trust company business and contact existing or prospective customers.

Nev. Rev. Stat. § 669.206 Authority of Commissioner to require an approved foreign independent trust company to maintain a surety bond; amount and form of bond; cancellation of bond.

1. As a condition to engaging in the solicitation of trust company business in this State pursuant to NRS 669.205 , the Commissioner may require a foreign independent trust company to maintain a surety bond payable to the Division of Financial Institutions in an amount not less than $100,000, plus any additional amount determined by the Commissioner to be appropriate for the size, complexity and inherent risk of the foreign independent trust company. 2. A surety bond required pursuant to subsection 1 is for the exclusive use and benefit of the Division and any customer receiving the services of the foreign independent trust company. 3. Each surety bond must: (a) Be in a form satisfactory to the Commissioner; (b) Be issued by a bonding company authorized to do business in this State; and (c) Secure the faithful performance of the obligations of the foreign independent trust company respecting the services provided to residents of this State. 4. A foreign independent trust company shall, within 10 days after the commencement of any action or notice of entry of any judgment against the foreign independent trust company by any creditor or claimant arising out of business regulated by NRS 669.205 , give notice thereof to the Commissioner by certified mail with details sufficient to identify the action or judgment. The surety that executed the bond of the foreign independent trust company shall, within 10 days after it pays any claim or judgment to a creditor or claimant, give notice thereof to the Commissioner by certified mail with details sufficient to identify the creditor or claimant and the claim or judgment so paid. 5. Whenever the principal sum of the surety bond is reduced by payments thereon less any recoveries, the foreign independent trust company shall furnish: (a) A new or additional surety bond so that the total or aggregate principal sum of the bonds equals the sum required pursuant to this section; or (b) An endorsement, duly executed by the surety reinstating the bond to the required principal sum. 6. The liability of the surety on a bond to the Division for a creditor or claimant of the foreign independent trust company is not affected by: (a) Any misrepresentation, breach of warranty, failure to pay a premium or other act or omission of the foreign independent trust company; or (b) Any insolvency or bankruptcy of the foreign independent trust company. 7. The liability of the surety continues as to all transactions entered into in good faith by the creditors and claimants with the agents of the foreign independent trust company within 30 days after: (a) The withdrawal from this State of the foreign independent trust company or the dissolution or liquidation of the foreign independent trust company; or (b) The termination of the bond, Ê whichever occurs first. 8. A foreign independent trust company or its surety shall not cancel or alter a bond except after providing notice to the Commissioner by certified mail. The cancellation or alteration must not become effective until 10 days after receipt of the notice by the Commissioner. A cancellation or alteration does not affect any liability incurred or accrued on the bond from inception of the surety bond to the expiration of the 30-day period designated in subsection 7.

Nev. Rev. Stat. § 669.207 Authorization of foreign trust company to act as fiduciary and solicit trust company business in this State; requirements.

1. In addition to the authority provided in NRS 662.245 and 669.209 , a foreign trust company may act as a fiduciary in this State, whether the appointment is by will, deed, court order or otherwise, without complying with the laws of this State relating to the qualification of corporations or limited-liability companies organized under the laws of this State to conduct trust company business or laws relating to the qualification of foreign corporations or foreign limited-liability companies if: (a) The foreign trust company is authorized by the laws of the state of its organization or domicile to act as a fiduciary in that state; (b) The foreign trust company is a subsidiary of a bank, savings association, bank holding company or savings and loan holding company subject to the supervision of a federal banking regulator; and (c) A trust company organized under the laws of this State, a national banking association having its main office in this State and a federal savings and loan association or federal savings bank having its main office in this State and authorized to act as a fiduciary in this State may, in such other state, act in a similar fiduciary capacity or capacities, as applicable, upon conditions and qualifications which the Commissioner finds are not unduly restrictive compared to those imposed by the laws of this State. 2. In addition to the authority provided in NRS 669.205 , a foreign trust company may engage in the solicitation of trust company business in this State, regardless of whether the foreign trust company has a physical location in this State, without complying with the laws of this State relating to the qualification of corporations or limited-liability companies organized under the laws of this State to conduct trust company business or laws relating to the qualification of foreign corporations or foreign limited-liability companies if: (a) The foreign trust company is authorized by the laws of the state of its organization or domicile to solicit trust company business in that state; (b) The foreign trust company is a subsidiary of a bank, savings association, bank holding company or savings and loan holding company subject to the supervision of a federal banking regulator; and (c) A trust company organized under the laws of this State, a national banking association having its main office in this State and a federal savings and loan association or federal savings bank having its main office in this State and authorized to engage in the solicitation of trust company business in this State may, in such other state, similarly engage in the solicitation of trust company business upon conditions and qualifications which the Commissioner finds are not unduly restrictive compared to those imposed by the laws of this State.

Nev. Rev. Stat. § 669.208 Appointment of Commissioner as agent for service of process; procedure for service of process; continuances; taxable costs; records.

1. A foreign trust company acting in this State in a fiduciary capacity or engaging in this State in the solicitation of trust company business pursuant to NRS 669.207 shall be deemed to have appointed the Commissioner as the agent of the foreign trust company for service of process in any action or proceeding against the foreign trust company that relates to or arises out of any matter in which the foreign trust company has: (a) Acted or is acting in this State in a fiduciary capacity; or (b) Engaged or is engaging in this State in solicitation of trust company business. 2. The commission of or engagement in this State in any act described in paragraph (a) or (b) of subsection 1 by a foreign trust company is deemed to signify the agreement of the foreign trust company that any legal process served upon the Commissioner pursuant to subsection 1 is of the same legal force and validity as if the legal process were served directly upon the foreign trust company. 3. Service of legal process pursuant to subsection 1 must be made by delivering to the Commissioner a copy of the legal process and paying the fee for service of process prescribed by the Commissioner. Such service shall be sufficient service of process upon a foreign trust company if: (a) Notice of such service and a copy of the process are, within 10 days after delivery to the Commissioner, sent by certified mail by the plaintiff to the principal office of the foreign trust company named in the action or proceeding in the state or territory in which it is located; and (b) An affidavit of compliance with paragraph (a) by the plaintiff is appended to the summons. 4. A court in which an action or proceeding pursuant to this section is pending may order such continuances as may be necessary to afford the foreign trust company named in the action or proceeding reasonable opportunity to defend the action. 5. The fee paid pursuant to subsection 3 by a plaintiff to the Commissioner at the time of the service of process may be recovered as taxable costs by the plaintiff from the defendant if the plaintiff prevails in the action. 6. The Commissioner shall keep a record of each legal process served on the Commissioner pursuant to this section which contains the date and time of each such service of process.

Nev. Rev. Stat. § 669.209 Foreign trust company request to maintain a retail trust company and engage in business in this State; procedure for denial or approval; fees; conditions; renewal; authorization of Commissioner to investigate; deposit of fees.

1. If a foreign trust company seeks to establish and maintain a retail trust company office and engage in the business of a trust company in this State, the foreign trust company must, in addition to any other requirements of law, submit to the Commissioner a written request on a form prescribed by the Commissioner for authorization to establish and maintain a retail trust company office and engage in the business of a trust company in this State. The written request must be accompanied by: (a) A nonrefundable fee of $1,000. (b) Evidence that the foreign trust company is qualified to do business as a foreign corporation or foreign limited-liability company pursuant to chapter 80 or 86 of NRS, as applicable. (c) The following information about each retail trust company office in this State: (1) The address of the retail trust company office; (2) The name of all persons who will be employed at the retail trust company office; and (3) Evidence of compliance with all applicable requirements for state and local business registrations and licenses. (d) Confirmation that the foreign trust company is authorized to conduct business as a trust company in its home state. (e) Confirmation by the applicable regulatory authority in the home state of the foreign trust company that the license or charter of the foreign trust company is in good standing. (f) Confirmation that the laws of the home state of the foreign trust company authorize a retail trust company organized under the laws of this State, licensed pursuant to this chapter and subject to regulation, supervision and examination by the Commissioner and a federal banking regulator to engage in the activities in which the foreign trust company proposes to engage in this State on substantially the same basis as authorized under the laws of this State. (g) Confirmation that the foreign trust company’s home state regulator subscribes to and is a signatory of the Nationwide Cooperative Agreement for Supervision and Examination of Multi-State Trust Institutions as adopted by the Conference of State Bank Supervisors. 2. The Commissioner, after considering the views of the home state regulator and the federal banking regulator to the extent available, may deny the approval of a foreign trust company to establish and maintain a retail trust company office and engage in the business of a trust company in this State if the Commissioner finds, after notice and hearing: (a) That the foreign trust company lacks sufficient financial resources to undertake the proposed activity or expansion without adversely affecting its safety or soundness; or (b) That such approval would be contrary to the public interest. 3. If the Commissioner approves a written request for authorization to establish and maintain a retail trust company office and engage in the business of a trust company in this State submitted pursuant to subsection 1, the foreign trust company must renew the request annually on a date and form prescribed by the Commissioner to continue such authorization. The written request for renewal must be accompanied by: (a) A nonrefundable renewal fee of $500; and (b) Confirmation that the information previously provided pursuant to paragraphs (b) to (g), inclusive, of subsection 1 remains accurate. If any such information has been changed, the foreign trust company shall provide updated information. 4. If the Commissioner approves a written request for authorization to establish and maintain a retail trust company office and engage in the business of a trust company submitted pursuant to subsection 1, the foreign trust company may: (a) Establish and maintain a retail trust company office in this State; and (b) Engage in the business of a trust company in this State, including, without limitation: (1) Acting as a fiduciary in this State; (2) Accepting fiduciary appointments, executing documents that create a fiduciary relationship and making decisions regarding the investment or distribution of fiduciary assets; and (3) Advertising and soliciting trust company business in this State and contacting existing or prospective customers. 5. The Commissioner may: (a) Rely on the applicable regulatory authority of the home state and the applicable federal banking regulator to examine and investigate activity conducted by the foreign trust company; (b) Investigate any retail trust company office established and maintained in this State by a foreign trust company as the Commissioner may deem necessary to determine if the retail trust company office is being operated in compliance with the applicable laws of this State and in accordance with safe and sound business practices; and (c) Require periodic reports regarding the operations of any foreign trust company that has established and maintains a retail trust company office in this State. 6. All money received by the Commissioner: (a) From the payment of fees pursuant to paragraph (a) of subsection 1 must be placed in the Investigative Account for Financial Institutions created by NRS 232.545 ; and (b) From the payment of renewal fees pursuant to paragraph (a) of subsection 3 must be deposited in the State Treasury pursuant to the provisions of NRS 658.091 . 7. As used in this section, “retail trust company office” means a place of business in this State from which a foreign trust company may engage in the business of a trust company.

Nev. Rev. Stat. § 669.210 Powers of retail trust companies; banking business prohibited.

1. Each retail trust company may, in the conduct of its trust business, within and outside this State, subject to NRS 669.092 , as applicable: (a) Act as indenture trustee or as trustee under any mortgage or bond of any person or of any municipality or body politic. (b) Accept and execute any municipal or corporate or individual trust not inconsistent with the laws of this State. (c) Act under the order or appointment of any court as guardian, administrator, receiver or trustee. (d) Act as executor or trustee under any will. (e) Act as fiscal or transfer agent of any state, municipality, body politic or corporation, and in such capacity receive and disburse money and register, transfer and countersign certificates of stock, bonds and other evidences of indebtedness. (f) Act as a registered agent of foreign corporations. (g) Accept and execute any trust business permitted by any law. (h) Acquire the fiduciary rights, powers, duties and liabilities of a bank, savings and loan association, savings bank, thrift company, trust company or credit union licensed pursuant to this title, and upon the effective date of such an acquisition, the fiduciary rights, powers, duties and liabilities of the bank, savings and loan association, savings bank, thrift company, trust company or credit union vest in and must be performed by the acquiring trust company. (i) Act as an agent, advisory agent, assignee, attorney-in-fact, authenticating agent, bailee, bond or indenture trustee, conversion agent, curator, custodian, escrow agent, exchange agent, fiscal or paying agent, financial adviser, investment adviser, investment manager, managing agent, purchase agent, registrar, safekeeping agent, subscription agent, warrant agent or in similar capacities generally performed by corporate trustees, and in so acting, may possess, purchase, sell, invest, reinvest, safekeep or otherwise manage or administer real or personal property of other persons. (j) Exercise the powers of a business corporation or limited-liability company organized or qualified as a foreign corporation or limited-liability company under Nevada law and any incidental powers that are reasonably necessary to enable it to fully exercise, in accordance with commonly accepted customs and usages, a power conferred in this chapter. (k) Do and perform all acts necessary to exercise the powers enumerated in this subsection and authorized by this chapter and any other applicable laws of this State. 2. A retail trust company may not engage in any banking business by accepting deposits or making loans.

Nev. Rev. Stat. § 669.220 Investments: General requirements.

1. A retail trust company: (a) Shall keep all trust funds and investments separate from the assets of the retail trust company, and all investments made by the retail trust company as a fiduciary must be designated so that the trust or estate to which the investments belong may be clearly identified. (b) When it holds trust funds awaiting investment or distribution, may deposit or leave those funds on deposit with a state or national bank or credit union. The funds must not be deposited or left with the same corporation depositing them or leaving them on deposit, or with a corporation or association holding or owning a majority of the stock of the retail trust company making or leaving the deposit, unless that corporation or association first pledges, as security for the deposit, securities eligible for investment by state banks or credit unions which have a market value equal to that of the deposited funds. No security is required with respect to any portion of the deposits that is insured under the provisions of NRS 672.755 or a law of the United States. (c) When it acts in any capacity under a court trust or private trust, unless the instrument creating the trust provides otherwise, may cause any securities or other assets held by it in its representative capacity to be registered or titled in the name of a nominee or nominees of the retail trust company. (d) When acting as depositary or custodian for the personal representative of a court trust or private trust, unless the instrument creating the trust provides otherwise, may with the consent of the personal representative of the trust, cause any securities or other assets held by it to be registered or titled in the name of a nominee or nominees of the retail trust company. 2. A trust company is liable for any loss occasioned by the acts of its nominees with respect to securities registered under this section. 3. No corporation or the registrar or transfer agent of the corporation is liable for registering or causing to be registered on the books of the corporation any securities in the name of any nominee of a trust company or for transferring or causing to be transferred on the books of the corporation any securities registered by the corporation in the name of any nominee of a trust company when the transfer is made on the authorization of the nominee. 4. The assets forming the capital of a retail trust company must: (a) Be cash, governmental obligations or insured deposits that mature within 3 years after acquisition, readily marketable securities or other liquid, secure assets, bonds, sureties or insurance, or some combination of the foregoing in accordance with NRS 669.100 . (b) Have an aggregate market value that equals or exceeds 100 percent of the company’s required stockholders’ equity. 5. A retail trust company may purchase or rent real or personal property useful for the conduct of the business and other activities of the retail trust company. 6. A retail trust company may invest its money for its own account, other than those required or permitted to be maintained by subsection 4 or 5 or NRS 669.100 , in any type or character of equity securities, debt securities or other asset, provided the investment complies with the prudent investor standards of NRS 164.700 to 164.775 , inclusive.

Nev. Rev. Stat. § 669.225 Investments: Trust company may invest in securities and provide services to investment trust or investment company; retail trust company may deposit money held in trust with affiliate.

1. In addition to the powers of investment granted to the trust company by the instrument creating the relationship of fiduciary or agent, a trust company which is acting as a fiduciary or agent may, in its discretion or at the direction of another person who is authorized to direct the investment of money held by the trust company as a fiduciary or agent, invest in the securities of an investment trust or investment company if: (a) The investment trust or investment company is an investment company for the purposes of the Investment Company Act of 1940, as amended, 15 U.S.C. §§ 80a-1 et seq.; (b) The portfolio of the investment trust or investment company consists substantially of investments which are not prohibited by the instrument creating the fiduciary or agency relationship; and (c) The relationship of the investment company to the trust company is disclosed to any person who is currently receiving statements for the account, by a prospectus, a statement of account or otherwise. 2. A retail trust company or an affiliate of the retail trust company that provides services to the investment trust or investment company, including, without limitation, acting as an adviser, custodian, transfer agent, registrar, sponsor, distributor or shareholder serving agent manager, may receive reasonable compensation for the services. The manner in which the compensation is calculated must be disclosed to any person who is currently receiving statements for the account by a prospectus, a statement of account or otherwise. 3. A retail trust company may deposit money held by the retail trust company as a fiduciary or agent that is awaiting investment or distribution as provided in the governing instrument for the account in an affiliated bank. To the extent that the money invested in an affiliated bank is not insured by the Federal Deposit Insurance Corporation, the retail trust company shall set aside collateral as security, under the control of appropriate fiduciary officers and employees, with a market value that at all times equals or exceeds the amount of the uninsured fiduciary money. 4. Notwithstanding subsections 1, 2 and 3, a retail trust company authorized to exercise trust powers in this State which is acting as a fiduciary shall not purchase for the fiduciary estate any fixed income or equity security issued by the retail trust company or an affiliate thereof other than an investment company, unless: (a) The retail trust company is expressly authorized to do so by the terms of the instrument creating the trust, a court order, the written consent of the grantor of the trust or the written consent of every adult beneficiary of the trust who, at the time the notice is provided, receives, or is entitled to receive, income under the trust or who would be entitled to receive a distribution of principal if the trust were terminated; or (b) The security is fairly priced and otherwise complies with the prudent investor standards of NRS 164.700 to 164.775 , inclusive, and the terms of the instrument, judgment, decree, or other document establishing the fiduciary relationship.

Nev. Rev. Stat. § 669.227 Trust company or savings bank that assumes role of custodian for individual retirement account to provide notice to holder of account.

1. If a trust company or savings bank assumes the role of custodian for any individual retirement account within the meaning of section 408(a) of the Internal Revenue Code of 1986, 26 U.S.C. § 408(a), from: (a) An affiliate of the trust company or savings bank, as applicable; (b) Another trust company or savings bank; or (c) An affiliate of another trust company or savings bank, Ê the trust company or savings bank, as applicable, which is assuming the role of custodian shall, in the manner required pursuant to the terms of the documentation of the individual retirement account and any requirements set forth in applicable federal law, provide each holder of the account with notice that the trust company or savings bank, as applicable, is assuming the role of custodian of the account. 2. As used in this section, “savings bank” has the meaning ascribed to it in NRS 673.0317 .

Nev. Rev. Stat. § 669.230 Discontinuing business.

Whenever any trust company desires to discontinue its trust business, it shall furnish to the Commissioner satisfactory evidence of its release and discharge from all the obligations and trusts which it has assumed or which have been imposed by law. Thereafter, the Commissioner shall enter an order cancelling the trust company’s license.

Nev. Rev. Stat. § 669.235 Licensee compliance with federal regulations; licensee to maintain information security program and notify Commissioner of notification events.

1. A licensee shall comply with the requirements set forth in 16 C.F.R. Part 314. 2. In addition to complying with the requirements set forth in 16 C.F.R. Part 314, a licensee shall: (a) Maintain the information security program required by 16 C.F.R. § 314.3 as part of the books and records of the licensee; and (b) Notify the Commissioner of any notification event in accordance with the regulations adopted by the Commissioner pursuant to subsection 4 of NRS 658.105 . 3. As used in this section: (a) “Information security program” has the meaning ascribed to it in 16 C.F.R. § 314.2. (b) “Notification event” has the meaning ascribed to it in 16 C.F.R. § 314.2.

Nev. Rev. Stat. § 669.240 Fidelity bonds; insurance.

1. The directors or managers of a trust company shall require good and sufficient fidelity bonds in the amount of $25,000 or more on all active officers, managers, members acting in a managerial capacity and employees, whether or not they receive a salary or other compensation from the trust company, to indemnify the trust company against loss because of any dishonest, fraudulent or criminal act or omission by any of the persons bonded acting alone or in combination with any other person. The bonds may be in any form and may be paid for by the trust company. 2. The trust company shall obtain suitable insurance against burglary, robbery, theft and other hazards to which it may be exposed in the operation of its business. 3. The trust company shall at least annually prescribe the amount or penal sum of the bonds or policies and designate the sureties and underwriters thereof, after giving due and careful consideration to all known elements and factors constituting a risk or hazard. The action must be recorded in the minutes of the trust company and reported to the Commissioner.

Nev. Rev. Stat. § 669.245 Commissioner authorized to be signatory.

The Commissioner is authorized to be, on his or her own behalf and that of the Division of Financial Institutions, a signatory to the Nationwide Cooperative Agreement for Supervision and Examination of Multi-State Trust Institutions as adopted by the Conference of State Bank Supervisors and exercise his or her discretion in the supervision of multi-state trust institutions consistently with that agreement.

Nev. Rev. Stat. § 669.250 Fees for examination; frequency of examination.

1. For each examination of a trust company’s books and records required or authorized under this chapter, the Commissioner shall charge and collect from the trust company a fee for conducting the examination and in preparing and typing the report of the examination at the rate established and, if applicable, adjusted pursuant to NRS 658.101 . 2. All money collected under this section must be deposited in the State Treasury pursuant to the provisions of NRS 658.091 . 3. The Commissioner shall examine a licensee as often as the Commissioner deems necessary.

Nev. Rev. Stat. § 669.260 Applicability of other provisions of certain chapters.

In addition to other provisions of chapters 657 to 671, inclusive, of NRS which are applicable to chapters 657 to 671, inclusive, of NRS as a whole or specifically made applicable to trust companies, the Commissioner may by regulation make applicable to trust companies any regulatory provision contained in chapters 657 to 667, inclusive, of NRS which can be reasonably applied and which are not inconsistent with the provisions of this chapter.

Nev. Rev. Stat. § 669.270 Regulations of Commissioner.

The Commissioner may adopt such regulations as may be necessary to carry out the purposes and provisions of this chapter.

Nev. Rev. Stat. § 669.275 Commissioner authorized to require audited financial statement; submission of list of stockholders or members.

1. The Commissioner may require a licensee to provide an audited financial statement prepared by an independent certified public accountant licensed to do business in this State. 2. On the fourth Monday in January of each year, each licensee shall submit to the Commissioner a list of stockholders required to be maintained pursuant to paragraph (c) of subsection 1 of NRS 78.105 or the list of members required to be maintained pursuant to paragraph (a) of subsection 1 of NRS 86.241 , verified by the president or a manager, as appropriate. 3. The list of members required to be maintained pursuant to paragraph (a) of subsection 1 of NRS 86.241 must include the percentage of each member’s interest in the company, in addition to the requirements set forth in that section. 4. Except as otherwise provided in NRS 239.0115 , any document submitted pursuant to this section is confidential. This subsection does not limit the examination of any document by the Department of Taxation if necessary to carry out the provisions of chapter 363C of NRS.

Nev. Rev. Stat. § 669.280 Authority of Commissioner to take disciplinary action and to close and liquidate business.

1. The violation of any of the provisions of this chapter by the officers or directors, or the managers or members acting in a managerial capacity, of any trust company is sufficient cause for the Commissioner to close the trust company, liquidate its business and revoke its license. 2. If a trust company or any person authorized to act on the behalf of the trust company refuses to allow the Commissioner or the Commissioner’s deputies to inspect all books, records, papers and effects of the business of the trust company, the Commissioner may revoke its license and proceed to wind up the affairs of the trust company.

Nev. Rev. Stat. § 669.281 Authority of Commissioner to remove officer, director, manager or employee of retail trust company; appeal of removal; hearing; judicial review.

1. The Commissioner may require the immediate removal from office of any officer, director, manager or employee of any retail trust company doing business under this chapter who is found to be dishonest, incompetent or reckless in the management of the affairs of the retail trust company, or who persistently violates the laws of this State or the lawful orders, instructions and regulations issued by the Commissioner. 2. An officer, director, manager or employee of a retail trust company who is removed from office pursuant to subsection 1 may appeal his or her removal by filing a written request for a hearing with the Commissioner within 10 days after the effective date of his or her removal. The Commissioner shall conduct the hearing after providing at least 5 days’ written notice to the retail trust company and the officer, director, manager or employee who is removed from office. Within 5 days after the hearing, the Commissioner shall enter an order affirming or disaffirming the removal of the person from office. An order of the Commissioner entered pursuant to this subsection is final for the purposes of judicial review.

Nev. Rev. Stat. § 669.283 Authority of Commissioner to investigate.

1. For the purpose of discovering violations of chapters 657 to 671 , inclusive, of NRS or of securing information required under this chapter, the Commissioner or the Commissioner’s duly authorized representatives may at any time investigate the business and examine the books, accounts, papers and records used therein of: (a) Any licensee; (b) Any other person engaged in an activity for which a license is required pursuant to the provisions of this chapter; and (c) Any person that the Commissioner has reasonable cause to believe is violating or is about to violate any provision of this chapter, whether or not the person claims to be within the authority or beyond the scope of this chapter. 2. For the purpose of examination, the Commissioner or the Commissioner’s authorized representatives must have and be given free access to the offices and places of business, files, safes and vaults of such persons. 3. The Commissioner may require the attendance of any person and examine the person under oath regarding: (a) Any transaction or business regulated pursuant to the provisions of this chapter; or (b) The subject matter of any audit, examination, investigation or hearing.

Nev. Rev. Stat. § 669.285 Confidentiality of records and documents.

Except as otherwise provided in NRS 239.0115, any application and personal or financial records submitted by a person pursuant to the provisions of this chapter and any personal or financial records or other documents obtained by the Division of Financial Institutions pursuant to an examination or audit conducted by the Division are confidential and may be disclosed only to: 1. The Division, any authorized employee of the Division and any state or federal agency investigating the activities covered under the provisions of this chapter; 2. The Department of Taxation for its use in carrying out the provisions of chapter 363C of NRS; and 3. Any person when the Commissioner, in the Commissioner’s discretion, determines that the interests of the public that would be protected by disclosure outweigh the interest of any person in the confidential information not being disclosed.

Nev. Rev. Stat. § 669.286 Failure to submit required report; fees; regulations.

1. If a trust company fails to submit any report required pursuant to this chapter or any regulation adopted pursuant thereto within the prescribed period, the Commissioner may impose and collect a fee of not more than $10 for each day the report is overdue. 2. The Commissioner shall adopt regulations establishing the amount of the fee that may be imposed pursuant to this section.

Nev. Rev. Stat. § 669.290 Willful neglect to perform duties imposed by law or failure to conform to material lawful requirement made by Commissioner unlawful; penalty.

Each officer, director, manager, member, employee or agent of a trust company who knowingly or willfully neglects to perform any duty required by this chapter or other applicable law, or who knowingly or willfully fails to conform to any material lawful requirement made by the Commissioner, is subject to removal upon order of the Commissioner, and is guilty of a category D felony and shall be punished as provided in NRS 193.130.

Nev. Rev. Stat. § 669.295 Administrative fines.

1. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $10,000 per violation upon a person who: (a) Without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter; or (b) Violates any provision of this chapter or any regulation adopted pursuant thereto. 2. The maximum total fine that the Commissioner may impose on any person pursuant to this section with respect to the same or similar actions or series of actions which constitute the violations must not exceed the greater of $100,000 or 125 percent of all losses incurred by the retail trust company and its clients as the direct or indirect result of such violations.

Nev. Rev. Stat. § 669.300 Violation of chapter constitutes gross misdemeanor unless otherwise specified.

Where no other punishment is otherwise provided by law, any person violating any provision of this chapter is guilty of a gross misdemeanor.

Nev. Rev. Stat. § 669.2015 “Federal banking regulator” defined.

“Federal banking regulator” means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency or the Federal Deposit Insurance Corporation.

Nev. Rev. Stat. § 669.2825 Authority of Commissioner to take disciplinary action or initiate proceedings to seize property.

1. The Commissioner may institute disciplinary action or forthwith initiate proceedings to take possession of the business and property of any retail trust company when it appears that the retail trust company: (a) Has violated its charter or any state or federal laws applicable to the business of a trust company. (b) Is conducting its business in an unauthorized or unsafe manner. (c) Is in an unsafe or unsound condition to transact its business. (d) Has an impairment of its stockholders’ equity. (e) Has refused to pay or transfer account assets to its account holders as required by the terms of the accounts’ governing instruments. (f) Has become insolvent. (g) Has neglected or refused to comply with the terms of a lawful order of the Commissioner. (h) Has refused, upon proper demand, to submit its records, affairs and concerns for inspection and examination of an appointed or authorized examiner of the Commissioner. (i) Has made a voluntary assignment of its assets to receivers, conservators, trustees or creditors without complying with NRS 669.230 . (j) Has failed to pay a tax as required pursuant to the provisions of chapter 363A or 363C of NRS. (k) Has materially and willfully breached its fiduciary duties to its customers. (l) Has failed to properly disclose all fees, interest and other charges to its customers. (m) Has willfully engaged in material conflicts of interest regarding a customer’s account. (n) Has made intentional material misrepresentations regarding any aspect of the services performed or proposed to be performed by the retail trust company. 2. The Commissioner also may forthwith initiate proceedings to take possession of the business and property of any trust company when it appears that the officers of the trust company have refused to be examined upon oath regarding its affairs.

Nev. Rev. Stat. § 669.2845 Revocation of license; notice and hearing required.

If the Commissioner finds that probable cause for revocation of any license exists and that enforcement of the provisions of this chapter requires immediate suspension of a license pending investigation, the Commissioner may, upon 5 days’ written notice and a hearing, enter an order suspending a license for a period not exceeding 20 days, pending a hearing upon the revocation.

Nev. Rev. Stat. § 669.2846 Authority of Commissioner to issue cease and desist order; action to enjoin by Attorney General or Commissioner; appointment of receiver.

1. Whenever the Commissioner has reasonable cause to believe that any person is violating or is threatening to or intends to violate any provision of this chapter, the Commissioner may, in addition to all actions provided for in this chapter and without prejudice thereto, enter an order requiring the person to desist or to refrain from such violation. 2. The Attorney General or the Commissioner may bring an action to enjoin a person from engaging in or continuing a violation or from doing any act or acts in furtherance thereof. In any such action, an order or judgment may be entered awarding a preliminary or final injunction as may be deemed proper. 3. In addition to all other means provided by law for the enforcement of a restraining order or injunction, the court in which an action is brought may impound, and appoint a receiver for, the property and business of the defendant, including books, papers, documents and records pertaining thereto, or so much thereof as a court may deem reasonably necessary to prevent violations of this chapter through or by means of the use of property and business, whether such books, papers, documents and records are in the possession of the defendant, a registered agent acting on behalf of the defendant or any other person. A receiver, when appointed and qualified, has such powers and duties as to custody, collection, administration, winding up and liquidation of such property and business as may from time to time be conferred upon the receiver by the court. 4. If a receiver is appointed pursuant to subsection 3, such receiver shall remit to the owners, members or shareholders of the retail trust company any amount of equity and capital of the retail trust company remaining after discharge of the liabilities and payment of the normal, prudent and reasonable expenses of the receivership.

Nev. Rev. Stat. § 669.2847 Revocation or suspension of license; notice and hearing required; administrative fines.

1. If the Commissioner has reason to believe that grounds for revocation or suspension of a license exist, the Commissioner shall give at least 20 days’ written notice to the licensee stating the contemplated action and, in general, the grounds therefor and set a date for a hearing. 2. At the conclusion of a hearing, the Commissioner shall: (a) Enter a written order dismissing the charges, revoking the license or suspending the license for a period of not more than 60 days, which period must include any prior temporary suspension. The Commissioner shall send a copy of the order to the licensee by registered or certified mail. (b) Impose upon the licensee an administrative fine of not more than $10,000 for each violation by the licensee of any provision of this chapter or any regulation adopted pursuant thereto. (c) If a fine is imposed pursuant to this section, enter such order as is necessary to recover the costs of the proceeding, including his or her investigative costs and attorney’s fees. 3. The grounds for revocation or suspension of a license are that: (a) The licensee has failed to pay the annual license fee; (b) The licensee, either knowingly or without any exercise of due care to prevent it, has violated any provision of this chapter or any regulation adopted pursuant thereto or any lawful order of the Division of Financial Institutions; (c) The licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A or 363C of NRS; (d) Any fact or condition exists which would have justified the Commissioner in denying the licensee’s original application for a license pursuant to the provisions of this chapter; or (e) The licensee: (1) Failed to open an office for the conduct of the business authorized by his or her license within 180 days after the date the license was issued; or (2) Has failed to remain open for the conduct of the business for a period of 30 days without good cause therefor. 4. An order suspending or revoking a license becomes effective 5 days after being entered unless the order specifies otherwise or a stay is granted.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-669.htmlFetched: 10/4/2026

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